US-based midstream oil and gas company Enterprise Products Partners announced that Altus Midstream has completed the acquisition of 33% equity interest in its subsidiary that owns the Shin Oak Natural Gas Liquids (NGL) pipeline.
The 658 mile (1,058km) Shin Oak Pipeline transports increasing NGL production from multiple basins to its NGL fractionation and storage complex in Mont Belvieu, Texas.
Shin Oak pipeline is supported by long-term customer commitments
The Shin Oak pipeline is supported by long-term customer commitments and is expected to transport up to 550,000 barrels per day (BPD) of NGLs by the fourth quarter of 2019.
Shin Oak system primarily receives NGL from its Orla natural gas processing complex in Reeves County, Texas, and Apache’s Alpine High play, through a long-term NGL sales agreement for 100% of NGLs produced.
Altus is a midstream corporation that owns significant gas gathering, processing and transportation assets through its consolidated subsidiaries.
Altus owns equity interests in four Permian-to-Gulf Coast pipelines and holds an option to acquire a 50% equity interest in the Salt Creek NGL pipeline.
Altus Midstream CEO Clay Bretches said: “Altus is pleased to partner with Enterprise on the Shin Oak Pipeline. Shin Oak is integrated with Enterprise’s existing pipelines and gas processing plants, which provide supply from multiple basins.
“This integration, along with connectivity to Enterprise’s fractionation complex in Mont Belvieu, drives substantial volume through the pipeline and provides superior flow assurance for customers, which is a significant competitive advantage for attracting additional third-party business.”
In December 2018, Altus Midstream exercised an option to acquire a 15% stake in the Gulf Coast Express Pipeline Project (GCX pipeline), a $1.75bn natural gas pipeline being built in Texas.
Enterprise is engaged in providing midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.
It also provides natural gas gathering, treating, processing, transportation and storage along with NGL transportation, fractionation, storage and import and export terminals.
In addition, it handles crude oil gathering, transportation, storage and terminals, petrochemical and refined products transportation, storage and terminals, and a marine transportation business that operates on the US inland and Intracoastal Waterway systems.
Enterprise general partner chief executive officer A J Jim Teague said: “We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025.
“In addition to providing much-needed takeaway capacity for NGLs, Shin Oak is a key asset in Enterprise’s integrated midstream network, which provides unparalleled access to the most attractive domestic and international markets.”
